Why The Pool

Why should a local government choose the Pool? Because we: (1) act ethically, sustainably, and consistently with our internal Mission Statement and Core Values; (2) build and maintain meaningful long-term relationships with our Members; and (3) provide sustainable economic value. Scroll down to learn more.

We provide sustainable economic value:

We don’t generate profit
for shareholders

The long-term cost of our coverage is less than in the commercial market because we don’t generate profit for shareholders. In fact, our “operating ratio (how much comes in v. how much goes out)” over the last 10 years is equal. Commercial insurers typically bring 10 percent or more over what they need to operate as profit for shareholders.

Members’ equity

Members’ equity remains within the Pool and is used specifically for the benefit of Members when claims and costs are less than expected.

We’re in it for the long-term
benefit of local governments

We won’t come and go from covering Member risks if they become more or less profitable. Insurance companies frequently leave markets entirely when they can’t make a profit, but we’re in it for the long-term benefit of local governments.

We have prepared financially through a special workers’ compensation fund

We write public entity coverage even when commercial carriers won’t. For example, most commercial insurers won’t write coverage for entities with first responders because they know the long-term costs for workers’ compensation claims is expensive. We have prepared financially through a special workers’ compensation fund designed to ensure lifetime income benefits for seriously injured first responders and their families should they pass away from a covered disease or injury.

We build and maintain meaningful long-term relationships with our Members:

Our Pool reflects our Members’ interests because it is governed by the Members we serve. Our 17-member Board of Trustees consists of city and other local government officials and others interested in local governments and their employees.

We value long-term relationships with our Members over short-term profitability. Our Member attrition is almost non-existent.

We help Members with complex issues, providing assistance even if the issue doesn’t directly align with a possible covered loss. Through internal efforts and coordination with the Texas Municipal League, we help local officials with general questions related to risk management and more. In fact, most Members have a dedicated Risk Management Advisor to assist with finding the right coverage, deductibles, and more.

We champion legal, legislative, and other advocacy outcomes that are “the right thing to do.” For example, we supported legislation in 2023 clarifying that a first responder with a traumatic brain injury is entitled to lifetime benefits.

We act ethically, sustainably, and consistently with our internal Mission Statement and Core Values:

We maintain focus on our Mission Statement, which is “to offer and provide Texas municipalities and other units of local government with a stable and economic source of risk financing and loss prevention services.” And our Core Values instruct every decision we make:

Public Service:

Serving the public good — for the benefit of local governments and their tax-paying citizens.

Fiscal Responsibility:

Responsibly managing our members’ pooled funds for the protection of their financial stability.

Operational Excellence:

Delivering excellent member service in all components of our risk financing and loss prevention services.

Integrity:

Serving with honesty, integrity, and professionalism.

  • Our governance structure keeps us aligned with what’s most important to our Members. Our Board consists of local officials who understand that their Pool-related decisions affect their constituents back home.
  • We recognize the importance of human outcomes in determining claims. We actually seek ways to provide coverage, when some private insurers do the opposite.
  • We invest around $800 million in assets in accordance with the Texas Public Funds Investment Act, with protection of principal being our primary objective. The legislature gave some investment flexibility for the Pool to use a percentage of the portfolio to support lifetime income benefits under the workers’ compensation system.